GOIL prepares to supply aviation
fuel
By Masahudu Ankiilu Kunateh, Ghanadot
Accra, Juky 19, Ghanadot - Ghana
Oil Company Limited (GOIL) announces that it has commenced
construction of facilities in Takoradi in the Western Region
to store and supply aviation fuel, a development which will
enhance the business of the company and enable the company
to become a major player in the aviation fuel supply
business for the first time in the history of the company.
Mr Freddie Blay, out-going Board Chairman of GOIL’ made this
known at the company’s 40th Annual General Meeting in Accra.
The company made a profit and made a profit after tax of GH¢4.257
in 2008 as against GH¢4.021 in 2007, resulting in earning
per share of GH¢0.020 up from GH¢0.19 in 2007. The company
paid customs duties and other levies to the tune of GH¢65.66
million to the government as against GH¢66.8 million in 2007
and paid a corporate tax of GH¢1.12 million. The total
contribution to Value Added Tax and the National Health
Insurance was GH¢0.339 million.
Mr. Blay said the company like other corporate bodies in the
oil industry was adversely affected by the country's
economic indicators.
He said inflation rose to 18.1 per cent by the end of last
year and the cedi depreciated by 20.1 per cent against the
dollar and 16.3 per cent against the Euro.
The outgoing Chairman said despite these economic challenges
the company was resilient during the year under.
According to him, GOIL marked its first full year of
operation last year and notwithstanding a general slowdown
on the stock market, the company's share price stabilized at
30 GHp for most part of the year. He said in 2007 a share of
GH¢0.007 was approved and paid. The total amount involved
was GH¢1.471 million whilst last year GH¢0.0085 per share
was proposed amounting to GH¢1.786 million, representing an
increase of 21 per cent over 2007.
Mr Blay on behalf of the board of directors, management and
staff of the company expressed appreciation to the
shareholders and other stakeholders of GOIL for supporting
the company over the years. He asked the shareholders to
extend the same co-operation to the incoming members of the
board to enable them to take the company to greater heights.
Mr Yaw Agyemang-Duah, Managing Director of GOIL said in his
report that there was a perception that Oil Marketing
Companies (OMCs) were reaping windfall from the ex-pump
price increases, saying: "The opposite was the reality as
more working capital had to be sourced at higher borrowing
costs to meet the rising cost of doing business."
He said since OMCs margins were fixed in Ghana pesewas per
litre, upward increases in ex-pump prices were not
favourable. The Managing Director said during the year, the
company marketed about 346,000 metric tons of products as
against 317,000 metric tons in 2007, adding that the sales
turnover was GH¢438.86 million as against GH¢306.49 million,
representing an increase of 43.19 per cent, attributing it
to the higher ex-pump prices for the products. He said for
the continuous enhancement of customer loyalty, the company
had introduced the GOIL Advantage Card (a debit electronic
card) for customers to use to buy products in all their
stations in the 10 regions.
Mr Agyeman-Duah said the competition being offered by other
oil marketing companies had rejuvenated and placed GOIL in a
pole position, attracting international recognition due to
its activities upstream. He stressed that the company's
participation in the aviation fuel business was likely to
materialize in 2009 and coupled with increased bunkering and
related exploration activities being undertaken by the
upstream companies would provide improvement in its business
and offer a brighter future.
Ghanadot
